US CUSTOMS


US Customs and Border Protection (CBP), a division of the US Department of Homeland Security, examines cargo at more than 300 ports of entry into the US, including seaports, airports, and land border crossings, and seizes goods that appear to infringe registered trademarks and copyrights on record with CBP. CBP also has the authority to seize any goods entering the US, even if the goods are not intended for the US market and the shipment is simply passing through the US to another country.


CBP can also issue monetary fines, request that the US Attorneys’ office criminally prosecutes the offenders, and/or coordinate, and participate in, raids on international counterfeit production facilities. Te CBP collaborates with other federal agencies and foreign governments to protect America’s innovation and competitiveness.


CBP’s reach also extends to imported products that appear to infringe a valid US patent or trade secret. While such infringements are not always manifested in counterfeit products, they nonetheless serve to undermine the rights of IP owners. However, CBP has less authority to enforce patents, as compared to trademark and copyright registrations.


While CBP has authority to make trademark and copyright infringement determinations, its authority to enforce patents is limited to the exclusion orders issued by the International Trade Commission (ITC). Tese exclusion orders are


issued under Section 337 of the Tariff Te Counterfeit Intelligence


Bureau of the International Chamber of Commerce estimates that counterfeit goods make up 5 to 7 percent of world trade. It is thought that counterfeiting robs US businesses of $200 to $250 billion annually.


Counterfeiting is not, as many people believe, limited to knock-off designer handbags and watches sold on the streets of New York City. Instead, it has evolved into a sophisticated black market industry involving the manufacture and sale of counterfeit versions of everything from infant formula to automobile parts. Te top 10 categories of seized products in 2011 were: pharmaceuticals, health/personal care products, eyewear/parts, critical technology components, electronic articles, cigarettes, perfumes/colognes, batteries, exercise equipment, and transportation/parts.


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Act of 1930 and are designed to prevent the unlawful importation of infringing goods. Before issuing an exclusion order, the ITC investigates an alleged infringement and determines whether Section 337 has been violated. If the ITC finds a violation, an exclusion order is issued, requiring enforcement by CBP. Te exclusion orders can be either ‘general’—meaning all goods of a certain description must be denied entry, with specified exceptions; or ‘limited’—meaning all goods of a certain description imported by a certain company or companies must be denied entry.


In addition to exclusion orders, the ITC can also issue seizure and forfeiture orders. Seizure and forfeiture orders are appropriate where an importer continues to attempt importation of a good aſter having been denied entry pursuant to an exclusion order, and aſter the importer has been notified by CBP that seizure and forfeiture could result from future importation attempts.


Whether the IP at issue constitutes a trademark, copyrighted materials, or a patent (or a combination), if used properly, CBP can be a cost- effective weapon in a company’s IP protection arsenal. Although sheer numbers dictate that not all cargo shipments can be examined by CBP, there are a number of steps IP owners can take to make it easier for CBP to enforce their rights.


Trademark/copyright enforcement


Step 1: E-recordation


With respect to trademark and copyright registrations, CBP has instituted an electronic recording system that greatly decreases the time and paperwork required for entering such rights into the CBP database. Once registered, information about the subject IP is available via an electronic database accessible to more than 40,000 US customs officers in the US and abroad. Te electronic database can be uploaded with images of protected rights and suspected counterfeits. It is also possible to record a trade name with CBP.


Step 2: Filing e-allegations


IP owners can also submit allegations of infringing shipments or conduct to CBP electronically, via the e-allegations online reporting system. CBP disseminates this information to the appropriate office or port of entry for investigation, and uses it to target suspect activities. Submissions can be anonymous, and may include photos and other documentation.


Step 3: Provide product identification guides


In order to help CBP make accurate infringement determinations in the field, brand owners can submit product identification guides that are placed on CBP’s internal website and linked to the e-recordation system. Tese guides contain information about the company, its IP, its CBP recordation numbers, and photos of genuine and suspect versions of the goods. IP owners can also provide physical ‘pocket guides’, which include similar information plus details of product attributes that tend to be infringed, to agents assigned to ports of interest.


Step 4: Training


Brand owners can also ask to be allowed to provide product identification training to CBP personnel at specific ports of entry. Tis allows face-to-face interaction with the officers and import specialists who inspect shipments and look for IP right infringements. Requests to provide such training are directed to the Assistant Port Director for Trade at each port of entry.


World Intellectual Property Review Annual 2012 55


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